House buyer interest not translating into sales

Significantly, interest in the market continued to pick up with 16% more Chartered Surveyors reporting a rise than a fall in new buyer inquiries.

As both house prices and interest rates fall, those with finance are looking for bargain opportunities. Interest is strongest in Wales while the balance in London continues to edge upwards.

Expectations that sales will increase have turned positive once again with 10% more Chartered Surveyors expecting sales to pick up in the coming months.

Optimism is most visible in London and across the South of England with the balance of surveyors expecting sales to increase in London rising from 18-38%.

In contrast Chartered Surveyors expect house prices to continue to decline in the near term.

RICS spokesperson Jeremy Leaf said: "The latest survey provides further evidence of the eagerness of buyers to try and pick up bargains.

"This interest has yet to translate into sales but transactions may pick up in the coming months if the Government follows through on its recent announcement and introduces guarantees for the issuance of residential mortgage-backed securities.

"The latest cut in interest rates may improve confidence for those on the margins, encouraging buyers looking for more attractive finance deals.”